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EU MiCA Licenses Scarce, Crypto Firms Eye Dubai Expansion

Created at 30 Jun · 10:30 AM1 source↑ Market-relevant
IN SHORT

As the EU's Markets in Crypto-Assets (MiCA) regulation deadline nears, only 244 crypto-asset service providers have secured full licenses. Many firms, facing uncertainty and high costs, are now exploring Dubai as a more welcoming jurisdiction, with some already restricting services in Europe.

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Key Numbers

244crypto-asset service providers with full EU MiCA licenses
3,000crypto firms seeking EU licenses
120weekly inquiries to a Dubai law firm from European crypto companies
57MiCA licenses issued in Germany
26MiCA licenses issued in France
50crypto licenses issued by Dubai's VARA

Who's Involved

Irina Heaver
lawyer at NeosLegal in Dubai receiving inquiries from European firms
Christine Lagarde
ECB President who reportedly intervened in Binance's Greek license application
Changpeng Zhao
revealed Binance was close to receiving a MiCA license in Greece
Coinbase
crypto firm that has secured MiCA compliance
Ripple
crypto firm that has secured MiCA compliance
Binance
crypto exchange no longer authorized to serve EU users, seeking French license
Bybit
crypto exchange restricting services for EEA users
VARA
Dubai's Virtual Assets Regulatory Authority
Tribe Tokenisation
tokenized assets platform awarded 50th VARA license

↳ Why This Matters

The stringent licensing requirements of the EU's MiCA regulation are forcing crypto firms to seek alternative jurisdictions, potentially reshaping the global landscape of digital asset services and highlighting Dubai's growing role as a crypto hub.

Key facts

  • Only 244 crypto-asset service providers have received full licenses under the EU's MiCA regulation.
  • Crypto firms are increasingly looking to Dubai as an alternative due to EU licensing challenges.
  • Germany leads in license issuance with 57, followed by France with 26.
  • Several European countries, including Greece, Hungary, Poland, Portugal, and Romania, have issued no MiCA licenses.
  • Binance, Bitget, and MEXC are no longer authorized to serve EU users.
  • Dubai's VARA has issued its 50th crypto license.

Crypto firms struggling to obtain licenses under the European Union's Markets in Crypto-Assets (MiCA) regulation are increasingly turning their attention to Dubai. With the July 1 deadline for full compliance approaching, only 244 crypto-asset service providers (CASPs) have secured the necessary licenses to operate across the EU.

This scarcity has led many European companies and founders to explore expansion into the United Arab Emirates, particularly Dubai, which is perceived as a more welcoming jurisdiction. Irina Heaver, a lawyer at NeosLegal in Dubai, reported a surge in inquiries, with her firm receiving over 120 weekly requests from European entities seeking to relocate their operations and intellectual capital.

Germany has issued the highest number of MiCA licenses with 57, followed by France with 26. However, several EU member states, including Greece, Hungary, Poland, Portugal, and Romania, have yet to issue any licenses. While major players like Coinbase and Ripple have achieved MiCA compliance, others face significant hurdles. Binance, Bitget, and MEXC are no longer authorized to serve EU users, and Binance is reportedly seeking a license in France. Bybit has also begun restricting certain services for users in the European Economic Area as part of its regulatory alignment.

Meanwhile, Dubai's Virtual Assets Regulatory Authority (VARA) continues to issue licenses, having awarded its 50th to the tokenized assets platform Tribe Tokenisation.

Frequently asked questions

The Markets in Crypto-Assets (MiCA) regulation is a landmark framework established by the European Union to regulate crypto-asset service providers and ensure consumer protection and market integrity.

Firms face challenges due to high costs, complex application processes, and uncertainty surrounding the licensing requirements, leading to delays and rejections.

Germany leads with 57 licenses, followed by France with 26.

Coinbase and Ripple are among the firms that have secured MiCA compliance.

What Happens Next

01Crypto firms will continue to seek alternative regulatory frameworks outside the EU.
02Further restrictions on crypto services may be implemented by firms unable to secure EU licenses.
03Dubai is expected to see continued growth in crypto firm inquiries and license applications.

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Cadence

How It Developed

The EU's Markets in Crypto-Assets (MiCA) regulation has issued only 244 full licenses to crypto-asset service providers.
European crypto firms are increasingly inquiring about relocating to Dubai due to licensing challenges in the EU.
Germany and France have issued the most MiCA licenses, while several countries have issued none.
Major crypto firms like Coinbase and Ripple have secured MiCA compliance.
Binance, Bitget, and MEXC are no longer authorized to serve EU users, with Binance seeking a license in France.
Bybit has begun restricting some crypto services for EEA users.
Dubai's Virtual Assets Regulatory Authority (VARA) has issued its 50th license.

Sources

T1
Crypto Firms Turn to Dubai as EU Grants Only 244 MiCA Licenses Ahead of DeadlineCoinGape

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